East Kutai Allocates Rp250 Million Per RT to Strengthen MSMEs

The East Kutai Regency Government in East Kalimantan has launched a Neighbourhood Unit (RT) Fund programme, allocating Rp250 million per RT to be utilised for various local needs, particularly to strengthen the role of micro, small, and medium enterprises (MSMEs). Regent Ardiansyah Sulaiman stated that the funds should be used in a targeted manner to open business opportunities, strengthen MSMEs, assist farmers and fishermen, improve the environment, and meet the basic needs of the community. This year, each RT in East Kutai received an allocation of Rp250 million. The value was initially set at Rp100 million in 2025, then increased by an additional Rp150 million through a budget revision, resulting in the rise to Rp250 million per RT for 2026. With 1,860 RTs spread across the villages and sub-districts of East Kutai Regency, the total budget allocated by the local government for all RTs this year amounts to Rp465 billion. The use of these funds is regulated by East Kutai Regent Regulation Number 13 of 2025, which stipulates that allocation decisions must be made through resident consultations and focused on four main areas: meeting basic needs, poverty alleviation and economic improvement, social welfare, and the environment and services. The Regent explained that for poverty alleviation and economic improvement, activities could include providing business capital assistance to groups, skills training, marketing local products, and supporting small traders and MSME operators within the RT. He stressed that MSMEs must be encouraged to seek market opportunities so that production can increase and employment opportunities can expand at the RT level, especially for the local poor. The funds can also be used to enhance the skills of young people who wish to become entrepreneurs, thereby generating new productive businesses. The Regent previously raised the implementation of the Rp250 million RT Fund Programme when inaugurating members of the Village Consultative Body in North Sangatta Village. He cited the example of Swarga Bara Village, which has 66 RTs and thus manages a budget of approximately Rp16.5 billion, noting that such a significant sum presents an opportunity to bring about substantial change if used in a directed, targeted manner tailored to the real needs of the community. ‘With a budget of this size, I hope there will be no more residents left behind or living in poverty. Use this budget to open business opportunities, strengthen MSMEs, help farmers and fishermen, and other activities needed by the community,’ the Regent said.